How to open a beauty salon in Dubai

In search of a promising and profitable business in the UAE, many entrepreneurs decide to open a beauty salon in Dubai. This is not accidental - the demand for beauty services in this country is growing exponentially due to the high standard of living and income levels of the population. People in the UAE are very concerned about their appearance, and this sector of the business is thriving.

However, it is necessary to take into account the high level of competition. In the emirates, salons offering various types of beauty services are practically everywhere. Therefore, to achieve success, it is necessary to determine the main concept and development strategy of the business right away.

Overview of the Beauty Services Industry in the UAE

According to experts from the analytical agency Statista, the cosmetics and personal hygiene market is currently the fastest-growing. The main reason for this is the generational shift, with young consumers entering the market with their inclination towards the beauty industry.

In recent years, the revenue of spa salons and beauty salons has exceeded $150 billion, and according to experts' estimates, it will continue to grow by six percent annually. By 2026, revenue is projected to reach $190 billion.

Currently, there are over 3500 beauty salons in Dubai. The emirate has earned a reputation as a leader in self-care. Here, you can find salons with the highest ratings in the world.

Moreover, there is a trend of rapid population growth in the country due to the purchase of real estate by wealthy individuals and investors from around the world who are accustomed to taking care of their appearance. This opens up opportunities for newcomers to start their own business and establish themselves in the service market, and for small enterprises to expand their business.

Advantages of Opening a Beauty Salon in Dubai

Beauty salons are a promising service sector in Dubai. By choosing this direction for your business, you can count on not only its development but also other advantages:

• Simple and clear requirements for foreign entrepreneurs;
• No difficulties in document processing, the main thing is to study local laws;
• High standard of living, so there will be no difficulties in finding clients;
• Absence of corporate payments;
• Low VAT rate - 5%;
• Low income tax rate - 9%;
• Obtaining a residency permit for the businessman.

In addition, Dubai has a well-developed transportation system, so both clients and specialists can reach the salon without personal transport.

The calm and friendly population, good social atmosphere, and cultural emphasis on looking good and staying young are the main factors contributing to business development in this service sector. Dubai boasts an advanced banking sector, so all financial transactions are transparent and secure.

Finding good professionals here is also easy. Many migrants come to Dubai in search of work. Among them, entrepreneurs can easily find top-notch hairdressers, certified manicure and pedicure specialists, as well as professionals in other beauty industry spheres

Steps to Obtain a Beauty Salon License in Dubai

Before starting activities in the beauty industry, you need to determine what beauty services you will provide. To start, you can limit yourself to a narrow range. For example, only hairdressing activities – haircuts, coloring, perms – or nail services. This option does not require large investments. The main condition for development is experienced and highly qualified masters.

Company Type

You also need to determine the type of your company. There are two jurisdictions in which a foreigner can open a business in the UAE:

• Mainland – a local company that can operate throughout the country;
• Freezone – a free economic zone. Registering a company in a free zone gives the right to work only within its territory.

Opening a beauty enterprise in one of the free zones exempts from customs duties and controls over the movement of funds. However, this restricts the flow of visitors only within that territory. It is much more profitable to open a beauty salon on one of the busy streets or in a prestigious area of Dubai. And if you want to develop a network of beauty salons, it is best to register a mainland company right away.

Choosing a Location for the Salon

Choosing the right location for your beauty establishment is another important factor that determines the potential of the entire business. It is best to choose buildings closer to the center and away from competitors. If it is not possible to meet these conditions, then you will need to create unique conditions to attract regular customers.

Ensure that the premises have a convenient entrance, parking, and meet all fire and sanitary safety requirements. After that, it must undergo inspection by the Dubai Municipality's Planning Department.

Obtaining a License

This is a permit from local authorities to conduct business in a specific service sector. In the UAE, there are two types of licenses:

• For a women's salon – allows providing various services:
• haircare – cutting, styling, washing, straightening, curling, coloring;
• cosmetic procedures: facial cleansing, rejuvenating treatments, makeup application;
• body care – skin waxing, henna application;
• manicure and pedicure.
• For a men's salon – unlike the women's, this certificate permits fewer procedures:
• haircare – cutting, styling, head massage;
• cosmetic services – facial cleansing and aesthetic facial treatments, hair removal, and foot care.

When applying for a license, it is mandatory to specify the target audience for the salon.

List of Required Documents

To open a beauty salon, you need to prepare a package of documents. Collecting them takes from two to four weeks. The list includes:

• Passport copies and visas of all shareholders for the Department of Economic Development (DED);
• Trade name. You need to come up with a brand name for the future beauty salon, preferably several in priority order, and submit an application to an authorized body for approval. The company name must comply with the protocol of agreements on trade names:
• absolute uniqueness of the name – duplicates will not be approved by the authorities;
• absence of offensive and socially disruptive words;
• absence of words related to religious attributes;
• compliance with the main sphere of activity.
• Agreement with a local service agent (LSA) – they will assist in obtaining a license to open a salon in Dubai;
• Proof of ownership of commercial real estate or an Ejari rental agreement. Note that the location for this business sector must comply with government requirements;
• Company memorandum;
• Approval documents from the Dubai government planning committee;
• Permission from the local health and safety authority.

Cost of Opening a Beauty Salon in Dubai

The cost of opening a business in the beauty services sector in Dubai depends on many factors:

• The class of service offered by the establishment and the type of salon services you plan to provide;
• The cost of rent, which depends on the area of the premises and its location;
• Expenses for interior design and subsequent renovation work;
• The cost of special equipment and furniture;
• The number of employees, as each one will require a corresponding set of documents.

In addition to this, you also need to add the cost of the license. The expenses for it will amount to 10–12 thousand dirhams. Marketing and advertising expenses will also be significant investment costs to sustain the business. However, with a proper strategy and good management, these investments will start yielding profits fairly soon.

Secrets of Successful Business Organization in the Service Industry in the UAE

Any business in the service sector for the residents of the Emirates will rapidly develop with proper planning. When opening a beauty salon in the UAE, consider the specifics of the region. For example, men are strictly prohibited from entering women's establishments. Failure to comply with this law may result in hefty fines or license revocation.

The process of preparing to launch a beauty salon in the UAE significantly differs from the Russian one. There are several key points to pay attention to:

• Selecting staff. In addition to being top-notch professionals, everyone should undergo a psychological compatibility check;
• Finding a distributor for all the necessary salon products (dyes, styling products, lotions, wax, and other consumables);
• Providing quality service. The audience visiting such establishments is very selective in this regard, so both the owner and the staff should be customer-oriented.

Requirements for Beauty Salons in Dubai

The government of the UAE cares about its citizens and residents, so the quality of services offered in the beauty sector must be top-notch. Before issuing a certificate allowing the operation of any beauty salon, the competent authority carefully inspects the premises. Experts have specific requirements:

• A sign with the salon's name. Its design is regulated by specific rules. First and foremost, it should be bright and noticeable for clients. Its location is also important – on the building facade or in front of the entrance;
• Brightness of lighting in the working area;
• Furniture in the salon – high-quality, comfortable for visitors, and always clean;
• Boiler for water heating;
• The master's working space width can be from three meters, length not less than 3.5 meters, ceiling height starting from 2.3 meters;
• A separate area for manicure, pedicure, henna application, and hair removal must be equipped with an opaque partition, its area should not be less than 2.5x1.5 meters;
• Towels, cosmetic products, procedure accessories must be stored in specially designated closed shelves, cabinets, or cabinets;
• Areas where facial care procedures are performed should be equipped with sinks.

In addition, you should ensure a waiting area for your clients. It should be comfortably furnished and separated from the service area. It is also necessary to ensure the presence of fire safety equipment in the premises.

Benefits of Working with Us

Establishing a salon business in Dubai is the most promising and profitable project in the service sector. Opening it is not difficult, as the government is welcoming towards foreign investors. However, it cannot be considered simple from a legal point of view – there are many nuances and requirements, significantly different from Russian realities.

Understanding all the nuances will be facilitated by The Level Consulting agency. With our years of experience operating in the United Arab Emirates, we provide clients with perfect conditions for starting a business or relocating it. We have experienced experts in opening bank accounts, accounting, and taxation. We value all our clients and provide professional support to each one.